Due to the lack of public transit investment by city governments, Daimler’s bus division closes its Mississauga, Ont. production facility.
Beginning today, April 25th, Daimler Buses will no longer accept new orders for its Orion buses and the Mississauga factory will be closed together with order commitments over the next year. Although a second factory will stay open in Oriskany, N.Y., it will only offer retrofits, parts and field service.
“Daimler Buses considered all possible options for reconfiguring our transit bus operations in North America, but at the end of the day, Orion is facing a situation where the cost position is not competitive, the local market is in a continued slump, and growth opportunities are not available from selling the product overseas,” Hartmut Schick, head of Daimler Buses, said in a release. “Discontinuing production of Orion buses was a very difficult decision.”
The company declared that municipal-level governments are not investing enough money in public transit buses, a sector which is expected to remain depressed over the following years. Daimler will pay severance to laid off employees and will honor all existing warranties and service contracts.